Spending cuts and tax hikes ahead as Reeves bids to plug £50bn-a-year hole

RACHEL Reeves has been warned that tax hikes and spending cuts of more than £50billion a year are needed to plug a budget deficit and preserve Britain's “buffer” against financial turmoil.

- By David Williamson Chief Political Commentator

RACHEL Reeves has been warned that tax hikes and spending cuts of more than £50billion a year are needed to plug a budget deficit and preserve Britain's “buffer” against financial turmoil.

Experts say “substantial tax increases” will be needed in the Budget if the Chancellor is to avoid breaking her fiscal rules.

The National Institute of Economic and Social Research forecasts the economy will grow by just 1.3% this year and 1.2% next.

David Aikman, the director of the think-tank, said: “The Chancellor cannot simultaneously meet her fiscal rules, fulfil spending commitments and uphold manifesto promises to avoid tax rises for working people.